Employee Motivation: Key Theories and Workplace Concepts

Introduction: The Centrality of Employee Motivation

The issue of employee motivation has become a central concern of management and leadership in modern business. There has been an increased realization, in both theory and practice, that employees are motivated by much more than salary, and that in order to get the most from an employee, many theories and practical motivational aspects must be considered. These range from psychological theories, which view motivation in terms of variables such as self-esteem and self-understanding, to more sociological and organizational theories about motivation.

Motivational theory in an employment context is a relatively new field of inquiry and research. The importance of motivational aspects in improving productivity and work atmosphere is a comparatively recent factor in leadership and management concerns. Prior to this development, the prevailing view was that employees should simply follow the rules and that their primary motivation was the payment they received. This refers to the old-fashioned "carrot and stick" approach to motivation.

This view embodied a rather negative understanding of human behavior and assumed that "people are lazy; they hate work to the extent that they avoid it; they have no ambition, take no initiative and avoid taking any responsibility; all they want is security, and to get them to do any work, they must be rewarded, coerced, intimidated and punished" (Motivation Theorists and Their Theories).

This view is, of course, not generally accepted by most experts today. Contemporary managers and business leaders have realized that in order to get the best from their employees, it is imperative to create a working environment and personal incentives that encourage individuals to work. Conversely, managers also recognize that research into motivation and motivational theory is important for eliminating or reducing those factors that can negatively affect the desire to work for a company. For example, theorists like McGregor believe that "people want to learn and that work is their natural activity to the extent that they develop self-discipline and self-development" (Motivation Theorists and Their Theories).

Although this aspect has been briefly introduced above, it is important to establish why an understanding of motivation and motivational strategies is so significant in the modern business environment. As a study from the Harvard Business School states:

The Importance of Motivational Theories in Modern Business

Motivated employees are crucial to a company's success — this has never been truer than today, when margins are thin (or nonexistent) and economic recovery remains elusive. These hard bottom-line realities may also mean that managers can't rely as much as they might have in the past on using financial incentives to drive employee engagement. (Getting a Handle on Employee Motivation)

In other words, in the very competitive and intense commercial world of today, the manager or business owner must rely on staff to be fully motivated to carry out their tasks. The application of motivational theories in practice has therefore assumed very high significance in the modern entrepreneurial and corporate world.

There is a clear consensus in the modern entrepreneurial environment that "success in any undertaking requires more than ability and resources; it also depends on motivation" (Jeffords, Scheidt, and Thibadoux). More significantly, in terms of workplace motivation theory, "managers must understand that annual raises and promotion opportunities aren't always enough. Managing the changing needs of professional staff requires individualized attention, specialized incentive programs and compensation plans more closely tied to individual achievement and performance" (Jeffords, Scheidt, and Thibadoux).

The significance of motivation theory and its application in specific environments can be appreciated through this succinct definition of human motivation: psychologists define motivation as "that which gives impetus to our behavior by arousing, sustaining, and directing it toward the attainment of goals" (Creech).

Overview of Employee Motivation Theories

There are numerous theoretical perspectives relating to the subject of employee motivation. The issue of motivation in the workplace is at the center of modern leadership and managerial strategies, and the different theories of motivation draw on psychological and sociological research, relying heavily on contemporary behavioral psychology. Each theory and theorist attempts to isolate those aspects seen as critical to understanding the factors that create a structure conducive to personal motivation.

Motivation theory in general refers to the broad motivational aspects discerned in human nature. However, employee motivation refers specifically to the motivational factors that can be cultivated within a certain environment — most notably, the workplace. Therefore, other factors must be taken into account, including the social and cultural aspects that may affect employee motivation. Motivation theory attempts to answer questions such as: to what extent are the environment and managerial policies a motivating or de-motivating factor in the workplace? Such questions must also incorporate research into the individual psychological elements that motivate employees.

A central aspect of understanding motivation theory is, therefore, the wide variety of variables that must be considered. "The manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines" (Employee Motivation: Theory and Practice). This leads to the issue of practical application, since theory must be implemented. What should always be kept in mind is that when one speaks about motivation, one is dealing with complex psychological and sociological aspects of human nature: "To understand motivation one must understand human nature itself. And there lies the problem!" (Employee Motivation: Theory and Practice).

Those in managerial and leadership positions are aware that motivation requires more than the payment of a salary. The CEO of General Electric, Jack Welch, once stated that employees must be rewarded both financially and with sustenance for "the soul" (Neff). In other words, "companies must also empower their employees and provide incentives for them to perform at high levels. Motivating employees and understanding the psychology behind employee motivation are essential to any successful organization" (Neff).

In general, the majority of theories on motivation share common threads. One of these is that mental and intellectual enrichment should form part of any understanding of employee motivation. "An employee who is able to learn from the daily interaction with work will know that he is receiving a benefit above that of simple pay, and will be willing to put much more effort into a process that is making him a more interesting and educated person" (Creech). Another recurring aspect is employee achievement and sense of purpose: "Achievement comes from the sense of accomplishment felt when an employee meets either long-term or short-term goals" (Creech). Employee recognition is a further factor that fosters a motivational environment.

Maslow's Hierarchy of Needs

When one speaks about employee motivation, one is in reality talking about human motivation in a particular context. Therefore, the basic factors seen as central driving forces in human motivation also apply to the workplace. One of the most important and influential theories addressing these central motivational factors is Maslow's Hierarchy of Needs — one of the most established and well-known of the foundational motivational theories.

Abraham Maslow was essentially a humanist theorist who believed there was a close and essential link between human motivation and human meaning. In other words, the individual is best motivated when the work he or she performs is meaningful in both a psychological and social sense. "Maslow's central theme revolves around the meaning and significance of human work" (Motivation Theorists and Their Theories). This theme is encountered repeatedly in many existential views of human motivation.

Maslow developed an elegant yet essentially simple theory of the different levels of human motivation. The basic human needs, according to Maslow, are: physiological needs; safety needs; love needs; esteem needs; and self-actualization needs (Motivation Theorists and Their Theories).

These needs are arranged in a hierarchy from the lowest to the highest. The highest level is self-actualization, the point at which the human being achieves the greatest meaning in terms of personal development. "The highest state of self-actualization is characterized by integrity, responsibility, magnanimity, simplicity and naturalness. Self-actualizers focus on problems external to themselves" (Motivation Theorists and Their Theories).

Maslow's hierarchy provides an important outline of the different aspects that motivate the individual and, by extension, the employee. The most basic needs are physiological — for example, hunger and thirst. After these are met, the need for safety and security arises. Following that, the individual seeks love or a sense of belonging to a group or social organization. Subsequent to the fulfillment of this need, the important need for self-esteem and self-respect must be met — the need for recognition or appreciation. Finally, the need for self-actualization, or self-fulfillment, involves a deeply felt sense of self-development and creative achievement.

The last two needs are of particular importance in modern management and the industrial working environment. Managers and leaders have realized that satisfying only the most basic needs of their employees is insufficient to fully motivate them or elicit their best performance and creativity. There has therefore been an emphasis in modern theory and practice on self-esteem and self-actualization as primary motivating factors:

In the past, management reward systems have attempted to satisfy an individual's lower level needs for safety and physiological security, for protection against deprivation and the threat to a worker or his family. However, management reward systems are now, or should be, endeavoring to satisfy the individual's higher level needs for esteem and self-fulfillment. (Abraham Maslow's Hierarchy of Needs)

Furthermore, Maslow's Hierarchy of Needs has particular relevance for contemporary society. Modern managers and leaders are aware that although the first and second levels of the hierarchy may have been satisfied, this is insufficient to generate employee motivation. "Pay alone is no longer the universal motivator. Now the workforce is more educated and able to handle creative, mental work. In fact, employees demand it in order to satisfy the upper-level needs" (Creech).

Conclusion: Practical Implications for Management

The modern manager and leader must take cognizance of the various theories and concepts relating to employee motivation in the contemporary workplace. As noted at the outset, the modern working and business environment necessitates a level of motivation that goes beyond the fulfillment of only basic and primary needs. The manager must therefore be aware of the complexities and the many variables present in any working situation, and which of these variables promote or retard motivation among employees.